Recaro's bankruptcy sends shockwaves through automotive sector

The automotive industry is going through a difficult period, and problems now affect even car seat manufacturers. Recaro has unexpectedly filed for bankruptcy.

According to the "Automobilwoche" service, Recaro's decision surprised both employees and the IG Metall labour unions. Information about the bankruptcy filing was published on July 29 at 12:00 PM ET by the court in Esslingen.

"It is unknown what this means for 215 employees of Recaro Automotive GmbH in Kirchheim. We expect that all options aimed at securing jobs and finding a sustainable solution will be exhausted," said IG Metall union representatives, quoted by "Automobilwoche".

The works council also expressed their disappointment, significantly since employees helped maintain the company's economic stability by agreeing to defer their salary payments.

"We feel let down by the management," said Frank Bokowits, chairman of the works council.

Currently, the bankruptcy filing applies solely to Recaro's automotive division. The company still produces car seats, office chairs, and airplane seats.